Trading Governance — Position Approval Council
Multi-agent deliberation with VaR analysis, compliance checks, and market risk assessment
Scenario Briefing
Meridian Capital Partners, a $3.2B multi-strategy hedge fund, has a senior portfolio manager requesting approval for a $250M notional EUR/USD short position on the Macro desk. The thesis: ECB will cut rates in March while the Fed holds — creating a 200+ pip move in EUR/USD. The trade has a 1.88:1 risk/reward ratio with a defined stop at 1.0960.
The complication: the Macro desk already has significant EUR exposure. This trade would push EUR concentration to 62% of desk risk — well above the 50% single-currency limit. The desk's VaR is already at 84% of its daily limit. The CRO has flagged this for Datacendia's Trading Governance Council — which must approve, modify, or reject the position before execution.
Meridian Capital Partners
$250M notional
VaR: 84% utilized
EUR: 62% (limit 50%)
CONCENTRATION BREACH